Indiana Mortgage Calculator | Ascension
Indiana Housing Market
Indiana is a particularly affordable place to buy a home. The median value of a home in Indiana is currently only $ 166,556, according to Zillow. In contrast, the median home value nationally is $ 295,300.
In fact, many large cities in Indiana offer low-value homes despite the abundance of amenities residents enjoy. In Fort Wayne, the median home value is $ 110,600, reports Niche. In South Bend, it’s $ 82,500. Even Indianapolis has affordable homes – the median property value there is $ 129,300.
Indiana’s current mortgage rates are also very competitive. Note that the mortgage rate you qualify for depends on a number of factors. These can include your credit score, income, and existing debt. However, you can use the current average Indiana mortgage interest rate with our simple Indiana mortgage calculator to estimate monthly payments.
How do I calculate my mortgage payment?
To calculate your monthly mortgage payments in Indiana, simply take your loan amount, its term (the number of years you will be paying it off), and your rate, and connect them to our mortgage calculator in the. Indiana.
Based on a rate of 3.005% and a term of 30 years, a mortgage of $ 100,000 in Indiana will cost you $ 421.60 per month for the principal and interest on your loan. But there are other expenses that you need to add to that figure to see what your total monthly housing costs will be. These include:
- Property taxes. These are paid monthly or quarterly, depending on how you arrange to pay them.
- Home insurance. It is generally paid monthly, quarterly or once a year.
- Private mortgage insurance (PMI). You will owe PMI if you don’t put at least a 20% down payment on your home
- HOA fees, or homeowners association fees. You are liable for these fees if you buy a house that is part of one of these associations
It’s these extra costs that can really catch you off guard as a new home buyer, so use our Indiana Mortgage Calculator to see exactly how your monthly payments might break down.
If you want to calculate your mortgage payment yourself, you can use this formula:
What to Know Before Buying a Home in Indiana
Certainly, housing in Indiana is relatively affordable compared to the costs of a home in the rest of the country. But of course you still need to make sure that your income can support your mortgage payments.
The 30% rule
As a general rule, your mortgage payment should not consume more than 30% of your take-home pay. By “mortgage payment” we don’t just mean the principal and interest on your loan. Rather, we are talking about capital and interest more all of the items listed above: taxes, insurance, etc. This means that if your after-tax paycheck gives you $ 3,000 per month, you shouldn’t be spending more than $ 900 per month on your mortgage payment and the above expenses.
However, this 30% rule does not necessarily have to include maintenance. This can include maintenance, but it’s okay if the maintenance costs sometimes exceed your budget by 30% (as long as you can afford it).
Home maintenance is often a variable expense. You could, for example, spend more money on maintenance during the winter months than during the summer, or vice versa. For this reason, some people prefer to keep their predictable monthly housing costs at 30% of their income or less – and budget for maintenance separately.
Property maintenance is typically 1% to 4% of your home’s value per year. What does this mean to you? If you are buying a home worth $ 100,000, budget $ 1,000 to $ 4,000 each year for maintenance. The older your home and the more in poor condition it is, the more likely it is to maintain.
This estimate applies to general maintenance, but major repairs are a separate category, so make sure you have a good amount of money in emergency savings for big issues.
Tips for First-Time Home Buyers in Indiana
Buying a home for the first time can be a nerve-wracking experience – and costly, even in a state like Indiana where homes are relatively affordable. Here are some things to remember when buying your first home.
Find programs for first-time buyers
Fortunately, there are a number of programs that could help you buy your first home.
One is the First Place program, which provides first-time buyers with down payment assistance of up to 6% (some borrowers, including veterans, may be eligible for this program even if they are not first-time buyers). Under this program, you get a 30-year fixed FHA loan, provided you have a minimum credit score of 640 and your debt-to-income ratio is below 45%. Or you can qualify with a minimum credit score of 680 if your debt-to-income ratio is above 45%, but below 50%.
You may also be eligible for a mortgage credit certificate, a certificate issued by certain state or local governments that gives you a tax credit for a portion of the mortgage interest you pay. If you are an American veteran, you might also qualify for a VA loan, so check out the best VA mortgage lenders to see what offers you qualify for.
Get the best interest rate
If you are applying for a home loan, it is beneficial to collect offers from multiple mortgage lenders rather than following the first offer you receive. Each lender sets their own rates and closing costs. If you put together a few deals, you can use our Indiana mortgage calculator to compare your costs with each.
Keep in mind that there are steps you can take to get the best possible mortgage rates. These include:
The more stable you appear to lenders, the less lenders will charge you for your mortgage.
Are You Ready To Get A Mortgage In Indiana?
If you are sure you want to relocate to Indiana then it is definitely worth using our Indiana Mortgage Calculator to get an idea of your monthly payment. That way, you can include that payment in your budget and make sure you’re really comfortable with it. Remember that while homes may be affordable in Indiana, you want to make sure that the property you are buying is actually affordable for you.